Illinois Instruction 1780 by maclaren1


									                                                                             Illinois Instruction 1780
                                                                                             Guide 14

                              SEWAGE TREATMENT CONTRACT

       This contract for the treatment of sewage is entered into as of the             day of

                       , 20    , between the

hereinafter referred to as the "Seller" of sewage treatment services and the


hereinafter referred to as the "Purchaser" of sewage treatment services.


       WHEREAS, the Purchaser is organized and established under the provisions of

of the Code of
for the purpose of constructing and operating a sanitary sewage collection system serving users
within the area described in plans now on file in the office of the Purchaser and to accomplish
this purpose, the Purchaser will require someone to supply sewage treatment services, and

       WHEREAS, the Seller owns and operates a sanitary sewer treatment system with a
capacity currently capable of serving the present customers of the Seller's system and the
estimated number of users to be served by the said Purchaser as shown in the plans of the system
now on file in the office of the Purchaser, and

        WHEREAS, by                                     , No.          enacted on the        day of
                       , 20    , by the Seller, the treatment of sewage in accordance with the
provisions of the said                                   was approved, and the execution of this
contract carrying out the said                           by the
and attested by the Secretary, was duly authorized, and

        WHEREAS, by                                           of the
of the Purchaser, enacted on the              day of                          , 20    , the purchase
of services to treat sewage in accordance with the terms set forth in the said
was approved, and the execution of this contract by the                                         , and
attested by the Secretary was duly authorized;

       NOW, THEREFORE, in consideration of the foregoing and the mutual agreements
hereinafter set forth:
(10/27/04) PN 321
Illinois Instruction 1780
Guide 14
Page 2

A.     The Seller Agrees:

        1.     (Quality and Quantity) To furnish the Purchaser at the point of delivery
hereinafter specified, during the term of this contract or any renewal or extension thereof, sewage
treatment services meeting applicable standards of the Illinois Environmental Protection Agency
in such quantity as may be required by the Purchaser not to exceed                    gallons per

        2.     (Point of Delivery) That sewage will be furnished at                           from
an existing                    inch main at a point located

Emergency failures due to power failure, flood, fire, earthquake or other catastrophe shall excuse
the Seller from providing service for such reasonable period of time as may be necessary to
restore service.

        3.      (Metering Equipment) To furnish, install, operate, and maintain at its own
expense at the point of delivery, the necessary metering equipment and required devices of
standard type for properly measuring the quantity of sewage delivered by the Purchaser and if any
meter fails for any period, the sewage furnished during such period shall be deemed to be the
amount of sewage delivered in the corresponding period immediately prior to the failure, unless
Seller and Purchaser shall agree upon a different amount. The metering equipment shall be read
                                . An appropriate official of the Purchaser at all reasonable times
shall have access to the meter for the purpose of verifying its readings.

      4.      (Billing Procedure) To Furnish the Purchaser at the above address not later than
the                          day of each month, with an itemized statement of the amount of
sewage delivered by the Purchaser during the preceding month.

B.     The Purchaser Agrees:

      1.      (Rates and Payment Date) To pay the Seller, not later than the                  day of
each month, for sewage treated in accordance with the following schedule of rates:

       a.      $                       per 1,000 gallons.

The rate per 1,000 gallons was calculated as follows:

        2.     (Connection Fee) To pay as an agreed cost, a connection fee to connect the
Seller's system with the system of the Purchaser, the sum of                                 dollars
which shall cover any and all costs of the Seller for installation of the metering equipment and


C.     It is further mutually agreed between the Seller and the Purchaser as follows:

        1.      (Term of Contract) That this contract shall extend for a term of              years
from the date of the initial delivery of any sewage as shown by the first bill submitted by the
Seller to the Purchaser and, thereafter may be renewed or extended for such term, or terms, as
may be agreed upon by the Seller and Purchaser.
                                                                            Illinois Instruction 1780
                                                                                            Guide 14
                                                                                               Page 3

        2.      (Delivery of Sewage) That                       days prior to the estimated date of
completion of construction of the Purchaser's sewage collection system, the Purchaser will notify
the Seller in writing the date for the initial delivery of sewage.

        3.     (Modification of Contract) That the provisions of this contract pertaining to the
schedule of rates to be paid by the Purchaser for sewage treatment are subject to modification at
the end of every                year period. Any increase or decrease in rates shall be based on a
demonstrable increase or decrease in the costs of performance hereunder. Other provisions of
this contract may be modified or altered by mutual agreement.

       4.       (Regulatory Agencies) That this contract is subject to such rules, regulations, or
laws as may be applicable to similar agreements in this State and the Seller and Purchaser will
collaborate in obtaining such permits, certificates, or the like, as may be required to comply

       5.      (Miscellaneous) That the construction of the sewage collection system by the
Purchaser is being financed by a loan made or insured by, and/or a grant from the United States
of America, acting through the United States Department of Agriculture Rural Development and
the provisions hereof pertaining to the undertakings of the Purchaser are conditioned upon the
approval, in writing, of the State Director of the USDA Rural Development.

        6.       (Successor to the Purchaser) That in the event of any occurrence rendering the
Purchaser incapable of performing under this contract, any successor of the Purchaser, whether
the result of legal process, assignment, or otherwise, shall succeed to the rights of the Purchaser

In witness whereof, the parties hereto, acting under authority of their respective governing
bodies, have caused this contract to be duly executed in      counterparts, each of which shall
constitute an original.


Attest:                                         Title:

Attest:                                        Title:


This contract is approved on behalf of USDA Rural Development this                            day of
                              , 20 .


(10/27/04) PN 321

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